Government-industry taskforce has submitted a reform-oriented blueprint recommending sweeping policy changes aimed at fast-tracking approvals, slashing costs, and promoting sustainable urban growth. The comprehensive proposal, now under review by the Delhi government, is expected to transform how redevelopment and real estate projects are approved, offering a major boost to investor sentiment and development timelines.
At the heart of the reform package is a plan to drastically reduce amalgamation charges for integrated commercial developments. Currently pegged at a steep 10% of the official circle rate, these charges have long been a sticking point for developers. The taskforce has recommended bringing them down to just 1%, which would significantly lower the entry barrier for large-scale commercial redevelopment in Delhi.
The proposed changes extend to group housing societies, cooperative societies, and Delhi Development Authority (DDA) housing colonies, especially those with buildings over 50 years old or deemed structurally unsafe. Instead of the current rigid norms requiring four hectares of land for redevelopment, the taskforce recommends allowing redevelopment by default in these cases. It also seeks to ease the consent requirement, suggesting 75% of stakeholders’ approval should suffice to initiate redevelopment, expediting decisions that often drag on for years due to procedural hurdles.
The Municipal Corporation of Delhi (MCD), Delhi Metro Rail Corporation (DMRC), DDA, Confederation of Indian Industry (CII), and Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) are among the institutions represented in the taskforce. Together, they have proposed a streamlined, single-window clearance mechanism for approvals, especially for land amalgamation and layout plans. Under this model, amalgamation charges would be collected at the time of approval, and DDA’s screening committee would handle layouts, reducing the need for multiple departmental clearances.
Another critical suggestion involves removing the mandatory requirement for MCD layout approval for single-plot developments—unless there is a change in land use. This is expected to benefit countless individual plot owners who often face unnecessary bureaucratic delays for simple construction or renovation work.
The report also proposes introducing incentives for sustainable construction. Projects adhering to green building norms and certified by government-recognised agencies would be eligible for additional ground coverage of up to 4% and Floor Area Ratio (FAR) bonuses of up to 5%. These incentives are aimed at encouraging eco-friendly practices in real estate development, especially for projects exceeding 2,000 sq m of built-up area.
On the financial front, the taskforce calls for recalibrating how reserve prices for land auctions are calculated. It suggests using a multiplication factor of 1 for industrial plots and 1.5 for commercial plots, aligning auction pricing more closely with market expectations. The same factors would apply to stamp duty valuations, reducing the current gap between circle rates and market rates—an issue often flagged by developers and homebuyers alike.
A senior Delhi government official noted that the reforms aim to unlock stalled potential in the city’s ageing housing stock and underutilised land parcels while reducing red tape and promoting environmentally responsible growth. If implemented, the measures could set the stage for a more transparent, efficient, and equitable real estate ecosystem in the capital.
The final decision on the reforms now rests with the Delhi government. But if adopted, they could set a benchmark for urban policy in India’s other metropolitan regions, aligning Delhi’s housing landscape more closely with the nation’s aspirations for inclusive and sustainable urban development.
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